N.J. Admin. Code § 11:4-7.4

Current through Register Vol. 56, No. 19, October 7, 2024

Section 11:4-7.4 - Premium charges

(a) Premium charges in excess of those produced by the rating system approved for the submitting company shall be reasonable and adequate and not unfairly discriminatory, and shall be proportionate to the additional hazard, subject to the following provisions on business for which coverage is available under any residual market mechanism created by statute:

1. Insurance available from these plans shall be rated in accordance with the rating systems approved for these facilities, and the procedures applicable to such business shall be followed, if written under the Consent to Higher Rate provision. Any surcharges to be applied to such business shall be documented by any required inspection report.

2. An insured qualifying for coverage under these plans shall not be offered coverage at lower limits, lower amounts or otherwise reduced coverage except at a proportionate reduction in the otherwise applicable premium.

3. If an insured eligible for insurance from these plans requests limits or amounts of insurance higher than available thereunder, the excess portion may be written at rates higher than produced by the company's rating system, subject to the standards set forth above.

N.J. Admin. Code § 11:4-7.4

Amended by R.1991 d.3, effective 1/7/1991.
See: 22 N.J.R. 1689(a), 23 N.J.R. 111(a).
In (a): deleted "New Jersey Automobile Insurance Plan" and added text regarding "any residual market mechanism..."
In (a)1: deleted text defining documentation by motor vehicle reports for automobile insurance and reference to cases of fire and crime insurance.
Amended by R.1996 d.4, effective 1/2/1996.
See: 27 N.J.R. 3557(a), 28 N.J.R. 165(a).
Recodified from N.J.A.C. 11:4-7.2 and amended by R.2006 d.132, effective 4/17/2006.
See: 37 N.J.R. 4859(a), 38 N.J.R. 1743(a).
In (a)1, substituted "shall" for "must".